India's Reliance Industries profit jumps 19% driven by digital and retail units

Financial performance is driving 'greater efficiencies in the economy and contributing to India’s emergence as one of the fastest-growing economies'

Jio Platforms, Reliance Industries' telecoms unit, posted a net profit of 49.84 billion rupees in the fourth quarter, up 15.6 per cent from a year earlier, as it maintained the strength of its subscriber base. ReutersShow less

Reliance Industries, the Indian conglomerate controlled by billionaire chairman Mukesh Ambani, reported a more than 19 per cent annual rise in its fourth-quarter profit, driven by the strength of its digital services and retail units.

Net profit attributable to owners of the company in the three months ending March climbed to 193 billion rupees ($2.4 billion), from the same period a year earlier, Mumbai-based Reliance said in a statement on Friday.

The results of India’s largest company by market value, beat projections of analysts polled by Bloomberg that had forecast a 164.93 billion rupee profit.

On an annual basis, profit rose nearly 10 per cent to 667 billion rupees, from 607 billion rupees a year ago. Reliance's fiscal year starts in April.

Fourth-quarter revenue from operations grew 2.1 per cent to 2.16 trillion rupees, from 2.11 trillion rupees last year. On an annual basis, it hit 8.93 trillion rupees, up about 24 per cent from 7.21 trillion rupees a year ago.

Total costs in the fourth quarter climbed 1.63 per cent to 1.95 trillion rupees, from 1.92 trillion rupees a year ago. Year-on-year, costs rose more than 23 per cent to more than eight trillion rupees, from 6.56 trillion rupees last year.

"Reliance’s initiatives in digital connectivity and organised retail are driving greater efficiencies in the economy and contributing to India’s emergence as one of the fastest-growing economies in the world," Mr Ambani, Asia's wealthiest person, said in the statement.

Activities of Reliance Industries span key sectors that include consumer, enterprise and industry, and its financial performance is seen as a barometer for Asia's third-largest economy.

Jio Platforms

Jio Platforms, Reliance's telecoms unit, posted a net profit of 49.84 billion rupees in the fourth quarter, up 15.6 per cent from 43.14 billion rupees a year earlier, as it maintained the strength of its subscriber base.

Jio's revenue from operations jumped 14.4 per cent to 2.55 trillion rupees, from 2.23 trillion rupees a year ago, while earnings before interest, taxes, depreciation and amortisation (Ebitda) climbed about 17 per cent to 1.28 trillion rupees, from 1.1 trillion rupees in the same period in 2022.

On an annual basis, Jio's profit surged 24 per cent to 191 billion rupees, while revenue from operations rose more than 20 per cent to 981 billion rupees.

Jio’s subscriber base added more than 29 million users to hit 439.3 million in the fourth quarter, up 7.1 per cent from 410.2 million in the same period last year. The average revenue per user rose 6.7 per cent to 178.8 rupees, from 167.6 rupees last year.

"With steady growth in mobility and FTTH [fibre-to-the-home] subscriber base and an expanding bouquet of content and digital services, the Jio business continues to deliver impressive growth in operating profits," Mr Ambani said.

Mukesh Ambani, chairman of Reliance Industries, is Asia's wealthiest person. Reuters

Reliance Retail

Reliance Retail, on the other hand, delivered "robust performance with another year of strong revenue growth and profit performance", the company said.

The unit posted a net profit of 24.15 billion rupees in the fourth quarter, up nearly 13 per cent from 21.39 billion rupees a year earlier, while revenue from operations leapt by a third 615.6 billion rupees, from 580.2 billion rupees a year ago.

Year-on-year, profit surged 30 per cent to 91.81 billion rupees, while revenue from operations leapt by nearly a third to 2.61 trillion rupees.

Fourth-quarter Ebitda surged by also a third to 49.14 billion rupees, from 37.1 billion rupees in the same period in 2022.

The "excellent" growth was backed by the expansion of Reliance Retail's physical and digital footprint and a significant increase in footfall, Mr Ambani said.

The number of Reliance Retail stores rose 18.7 per cent to 18,040, from 15,196 a year ago, with customer footfall surging more than 41 per cent to 219 million — its highest ever — from 155 million in the same period in 2022.

The division's focus remains on "customer-centricity backed by investments in technology, innovation and new business segments", Isha Ambani, executive director of Reliance Retail Ventures, said in the statement.

Reliance’s initiatives in digital connectivity and organised retail are driving greater efficiencies in the economy and contributing to India’s emergence as one of the fastest-growing economies in the world

Mukesh Ambani,
chairman of Reliance Industries

Fourth-quarter revenue at Reliance's key oils-to-chemicals (O2C) unit declined nearly 12 per cent to 1.28 trillion rupees, from 1.46 trillion rupees a year ago.

On an annual basis, revenue surged 18.7 per cent to about 5.95 trillion rupees, from 5 trillion rupees in the year-ago period, on higher oil prices.

Exports marginally fell 0.4 per cent to 788.5 billion rupees, from 791.4 billion rupees, in the corresponding period a year ago, but rose by a third to nearly 3.4 trillion rupees, from 2.55 trillion rupees in 2022, on an annual basis.

The O2C segment posted its highest-ever operating profit "despite global uncertainties and disruptions in commodity trade flows", Mr Ambani said.

Revenue at Reliance's oil and gas exploration unit surged 127 per cent to 45.56 billion rupees, from 20.1 billion rupees a year ago. On an annual basis, it jumped more than 120 per cent to 165 billion rupees, from 74.92 billion rupees a year earlier.

The oil and gas division's "very strong growth" makes it "poised to contribute nearly 30 per cent of India’s domestic gas production", Mr Ambani said.